Economic officials of CEMAC in conclave in Paris
Faced with criticism from the petroleum industry and the threat of blocking the support of the IMF, France supports CEMAC countries by defending an exchange policy guaranteeing the strengthening of its external reserves.
Under the aegis of Éric Lombard, French Minister of Economy, Finance and Industrial and Digital Sovereignty, and Iván Bacale Ebe Molina, Equato-Guinean Minister chairing the Ministerial Committee for the Monetary Union of Central Africa, the economic officials of CEMAC and France held a high-level meeting on April 17.
This meeting, which is part of the monetary cooperation agreements between France and CEMAC, intervenes in a context of increasing tensions around exchange regulations in Central Africa. – the opportunity for Paris to reaffirm its support for the policy of repatriation of the currencies implemented by the Bank of the Central African States (BEAC). “France will continue to support CEMAC and its member states, including in the proper implementation of exchange regulations and in their relations with the IMF,” said the press release published by Bercy after the meeting.
Paris does not however specify the concrete nature of its support, while the Cemac countries engage in a strategic showdown with the oil and mining multinationals. On March 25, Michigan’s elected representative of Michigan, Bill Huizenga, introduced a bill to the US Congress, a bill to suspend any intervention of the United States within the IMF in favour of the countries of this region (Cameroon, Gabon, Congo, RCA, Equatorial Guinea). In line of sight: the latter’s desire to impose the repatriation of the RES funds, provisions that extractive companies must constitute to restore the sites after operation.
The last chance meeting
On the instruction of the heads of state of the region, the BEAC fixed an ultimatum on April 30, 2025. Beyond this date, heavy sanctions will be applied to companies that have not signed the sequestal account conventions necessary for the repatriation of the RES funds. As a reprisal, Washington could then exercise its right of vet to the IMF board of directors to lock budgetary support within the framework of current and future economic and financial programs.
With 16.73 % of voting rights within the fund, the United States has a de facto right of veto, which makes this legislative initiative particularly worrying for regional financial balances. As a prelude to the Paris meeting, a consultation was held on April 15 and 16 between the oil tankers and the states, but did not succeed in any consensus, each party camping in its position. “There was no notorious advance. Industrialists camp on their position by demanding that the BEAC renounces its immunity of execution. Non -negotiable problem for the BEAC, ”says a source close to the file. A final meeting is scheduled for April 22 in Washington to try to find a compromise.
86 billion FCFA of losses in sight
In this showdown which takes on a geopolitical dimension, the Cemac countries play big. If they decide to backtrack, they will have few alternatives to reconstruct their external reserves – estimated 4.8 months of imports of goods and services in March 2025- and thus stabilize their currency. A study conducted by the BEAC estimates that the repatriation of the RES funds could generate up to 6,000Billion FCFA (approximately $ 9.6 billion) of currencies for CEMAC countries, thus reinforcing their external balance. Conversely, the withdrawal of the FMI support would threaten macroeconomic stability. However, as Bercy recalls, these supports are crucial to “support budgetary consolidation and the implementation of reforms”.
“The BEAC a new opportunity to return to the negotiating table and do what is just by getting rid of these regulations that slow down our region,” said NJ Ayuck, president of the African Energy Chamber. According to this organization, the strict application of exchange regulations could drop foreign investments of $ 45 billion in the CEMAC region by 2050 and cause up to $ 86 billion in public revenue.
BC
